Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 01, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | FLGT | |
Entity Registrant Name | FULGENT GENETICS, INC. | |
Entity Central Index Key | 0001674930 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 29,701,246 | |
Entity File Number | 001-37894 | |
Entity Tax Identification Number | 81-2621304 | |
Entity Address, Address Line One | 4399 Santa Anita Avenue | |
Entity Address, City or Town | El Monte | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91731 | |
City Area Code | 626 | |
Local Phone Number | 350-0537 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Security Exchange Name | NASDAQ | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Incorporation, State or Country Code | DE |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current assets | ||
Cash and cash equivalents | $ 66,172 | $ 79,506 |
Marketable securities | 438,313 | 446,729 |
Trade accounts receivable, net of allowance for credit losses of $38,302 and $41,205 | 43,549 | 52,749 |
Other current assets | 32,689 | 48,889 |
Total current assets | 580,723 | 627,873 |
Marketable securities, long-term | 366,833 | 326,648 |
Redeemable preferred stock investment | 12,982 | 12,385 |
Fixed assets, net | 79,083 | 81,353 |
Intangible assets, net | 148,699 | 150,643 |
Goodwill | 143,120 | 143,027 |
Other long-term assets | 45,327 | 44,124 |
Total assets | 1,376,767 | 1,386,053 |
Current liabilities | ||
Accounts payable | 22,080 | 23,093 |
Accrued liabilities | 21,088 | 24,981 |
Contract liabilities | 2,733 | 3,199 |
Customer deposit | 11,621 | 10,895 |
Investment margin loan | 14,999 | 14,999 |
Notes payable, current portion | 5,608 | 5,639 |
Other current liabilities | 3,810 | 5,301 |
Total current liabilities | 81,939 | 88,107 |
Unrecognized tax benefits | 9,836 | 9,836 |
Other long-term liabilities | 16,073 | 18,235 |
Total liabilities | 107,848 | 116,178 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity | ||
Common stock, $0.0001 par value per share, 50,000 shares authorized, 31,502 and 31,248 shares issued, respectively, and 29,692 and 29,438 shares outstanding, respectively | 3 | 3 |
Preferred stock, $0.0001 par value per share, 1,000 shares authorized, no shares issued or outstanding | ||
Additional paid-in capital | 495,981 | 486,585 |
Accumulated other comprehensive loss | (17,196) | (20,903) |
Retained earnings | 785,660 | 801,000 |
Total Fulgent stockholders' equity | 1,264,448 | 1,266,685 |
Noncontrolling interest | 4,471 | 3,190 |
Total stockholders’ equity | 1,268,919 | 1,269,875 |
Total liabilities and stockholders’ equity | $ 1,376,767 | $ 1,386,053 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Allowance for credit losses | $ 38,302 | $ 41,205 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 31,502,000 | 31,248,000 |
Common stock, shares outstanding | 29,692,000 | 29,438,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 66,168 | $ 320,268 |
Cost of revenue | 47,357 | 77,725 |
Gross profit | 18,811 | 242,543 |
Operating expenses: | ||
Research and development | 9,782 | 5,989 |
Selling and marketing | 10,083 | 7,940 |
General and administrative | 21,802 | 25,775 |
Amortization of intangible assets | 1,968 | 906 |
Total operating expenses | 43,635 | 40,610 |
Operating (loss) income | (24,824) | 201,933 |
Interest and other income, net | 3,775 | 45 |
(Loss) income before income taxes | (21,049) | 201,978 |
(Benefit from) provision for income taxes | (5,200) | 48,421 |
Net (loss) income from consolidated operations | (15,849) | 153,557 |
Net loss attributable to noncontrolling interests | 509 | 422 |
Net (loss) income attributable to Fulgent | $ (15,340) | $ 153,979 |
Net (loss) income per common share attributable to Fulgent: | ||
Basic | $ (0.52) | $ 5.09 |
Diluted | $ (0.52) | $ 4.93 |
Weighted-average common shares: | ||
Basic | 29,536 | 30,234 |
Diluted | 29,536 | 31,240 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income from consolidated operations | $ (15,849) | $ 153,557 |
Other comprehensive income (loss): | ||
Foreign currency translation gain | 168 | 123 |
Net gain (loss) on available-for-sale debt securities, net of tax | 5,329 | (11,738) |
Comprehensive (loss) income from consolidated operations | (10,352) | 141,942 |
Net loss attributable to noncontrolling interest | 509 | 422 |
Foreign currency translation gain attributable to noncontrolling interest | (1,790) | (119) |
Comprehensive (income) loss attributable to noncontrolling interest | (1,281) | 303 |
Comprehensive (loss) income attributable to Fulgent | $ (11,633) | $ 142,245 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Stockholders' Equity | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Fulgent Stockholders' Equity | Noncontrolling Interest |
Beginning Balance at Dec. 31, 2021 | $ 1,165,880 | $ 3 | $ 501,908 | $ (759) | $ 657,597 | $ 1,158,749 | $ 7,131 |
Beginning Balance, Shares at Dec. 31, 2021 | 30,160,000 | ||||||
Equity-based compensation | 5,616 | 5,616 | 5,616 | ||||
Exercise of common stock options | 16 | 16 | 16 | ||||
Exercise of common stock options, Shares | 3,000 | ||||||
Restricted stock awards, Shares | 172,000 | ||||||
Common stock withholding for employee tax obligations | $ (494) | (494) | (494) | ||||
Common stock withholding for employee tax obligations, Shares | (8,000) | ||||||
Repurchase of common stock, Shares | 0 | ||||||
Other comprehensive income (loss) | $ (11,615) | (11,734) | (11,734) | 119 | |||
Net income (loss) | 153,557 | 153,979 | 153,979 | (422) | |||
Ending Balance at Mar. 31, 2022 | 1,312,960 | $ 3 | 507,046 | (12,493) | 811,576 | 1,306,132 | 6,828 |
Ending Balance, Shares at Mar. 31, 2022 | 30,327,000 | ||||||
Beginning Balance at Dec. 31, 2022 | $ 1,269,875 | $ 3 | 486,585 | (20,903) | 801,000 | 1,266,685 | 3,190 |
Beginning Balance, Shares at Dec. 31, 2022 | 31,248,000 | 29,438,000 | |||||
Equity-based compensation | $ 10,265 | 10,265 | 10,265 | ||||
Restricted stock awards, Shares | 280,000 | ||||||
Common stock withholding for employee tax obligations | $ (869) | (869) | (869) | ||||
Common stock withholding for employee tax obligations, Shares | (26,000) | ||||||
Repurchase of common stock, Shares | 0 | ||||||
Other comprehensive income (loss) | $ 5,497 | 3,707 | 3,707 | 1,790 | |||
Net income (loss) | (15,849) | (15,340) | (15,340) | (509) | |||
Ending Balance at Mar. 31, 2023 | $ 1,268,919 | $ 3 | $ 495,981 | $ (17,196) | $ 785,660 | $ 1,264,448 | $ 4,471 |
Ending Balance, Shares at Mar. 31, 2023 | 31,502,000 | 29,692,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity (unaudited) (Parenthetical) | Mar. 31, 2023 shares |
Common stock shares not issued and holdback as partial security for indemnification obligations | 371,006 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flow from operating activities: | ||
Net (loss) income from consolidated operations | $ (15,849,000) | $ 153,557,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity-based compensation | 10,265,000 | 5,616,000 |
Depreciation and amortization | 6,879,000 | 4,695,000 |
Provision for credit losses | (113,000) | 11,574,000 |
Noncash lease expense | 1,561,000 | 477,000 |
(Gain) loss on disposal of fixed asset | (179,000) | 250,000 |
Amortization of (discount) premium of marketable securities | (478,000) | 1,910,000 |
Deferred taxes | (5,200,000) | (5,497,000) |
Unrecognized tax benefits | 485,000 | |
Net loss on marketable securities | 513,000 | |
Other | 15,000 | |
Changes in operating assets and liabilities: | ||
Trade accounts receivable | 9,331,000 | (32,924,000) |
Other current and long-term assets | (1,629,000) | 2,962,000 |
Accounts payable | (1,855,000) | 2,110,000 |
Income tax payable | 51,376,000 | |
Accrued liabilities and other liabilities | (9,114,000) | (8,231,000) |
Operating and finance lease liabilities | (1,526,000) | (477,000) |
Net cash (used in) provided by operating activities | (7,907,000) | 188,411,000 |
Cash flow from investing activities: | ||
Purchase of marketable securities | (143,926,000) | (130,133,000) |
Purchase of preferred stock of privately held company | (15,000,000) | |
Purchases of fixed assets | (2,034,000) | (5,360,000) |
Contingent consideration payout related to a business acquisition | (10,000,000) | |
Proceeds from sale of fixed assets | 198,000 | 14,000 |
Maturities of marketable securities | 141,408,000 | 27,760,000 |
Proceeds from sale of marketable securities | 133,407,000 | |
Net cash (used in) provided by investing activities | (4,354,000) | 688,000 |
Cash flow from financing activities: | ||
Common stock withholding for employee tax obligations | (869,000) | (494,000) |
Repayment of notes payable | (375,000) | |
Principal paid for finance lease | (232,000) | (81,000) |
Proceeds from exercise of stock options | 16,000 | |
Net cash used in financing activities | (1,101,000) | (934,000) |
Effect of exchange rate changes on cash and cash equivalents | 28,000 | 10,000 |
Net (decrease) increase in cash and cash equivalents | (13,334,000) | 188,175,000 |
Cash and cash equivalents at beginning of period | 79,506,000 | 164,894,000 |
Cash and cash equivalents at end of period | 66,172,000 | 353,069,000 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 1,680,000 | 435,000 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchases of marketable securities in other current liabilities | 3,519,000 | |
Purchases of fixed assets in accounts payable | $ 2,537,000 | 2,054,000 |
Purchases of fixed assets in notes payable | $ 3,833,000 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP. These financial statements include the assets, liabilities, revenues and expenses of all subsidiaries and entities in which the Company has a controlling financial interest or is deemed to be the primary beneficiary. In determining whether the Company is the primary beneficiary of an entity, the Company applies a qualitative approach that determines whether it has both (i) the power to direct the economically significant activities of the entity and (ii) the obligation to absorb losses of, or the right to receive benefits from, the entity that could potentially be significant to that entity. The Company uses the equity method to account for its investments in entities that it does not control, but in which it has the ability to exercise significant influence over operating and financial policies. All intercompany accounts and transactions are eliminated from the accompanying condensed consolidated financial statements. Nature of the Business Fulgent Genetics, Inc., together with its subsidiaries and affiliated professional corporations, or PCs (collectively referred to as “the Company,” unless otherwise noted or the context otherwise requires,) is a technology-based company with a well-established clinical diagnostic business and a therapeutic development business. Its clinical diagnostic business offers molecular diagnostic testing services, comprehensive genetic testing, and high-quality anatomic pathology laboratory services designed to provide physicians and patients with clinically actionable diagnostic information to improve the quality of patient care. Its therapeutic development business is focused on developing drug candidates for treating a broad range of cancers using a novel nanoencapsulation and targeted therapy platform designed to improve the therapeutic window and pharmacokinetic profile of new and existing cancer drugs. The Company aims to transform from a genomic diagnostic business into a fully integrated precision medicine company. Unaudited Interim Financial Information The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the Company’s audited consolidated financial statements as of and for the fiscal year ended December 31, 2022, which are included in the Company’s annual report on Form 10-K filed with the Securities and Exchange Commission, or SEC, on February 28, 2023, or the 2022 Annual Report, and, in the opinion of management, include all adjustments, which are normal and recurring in nature, necessary for a fair presentation of the Company’s financial position and results of operations. Operating results for interim periods are not necessarily indicative of the results that may be expected for a full fiscal year or any other period. The accompanying Condensed Consolidated Balance Sheet as of December 31, 2022 has been derived from the Company’s audited consolidated financial statements at that date but does not include all of the disclosures required by U.S. GAAP. As such, the information included in this quarterly report on Form 10-Q should be read in conjunction with the Company’s audited consolidated financial statements included in the 2022 Annual Report, including the notes thereto. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2. Summary of Significant Accounting Policies See the summary of the Company’s significant accounting policies set forth in the notes to its consolidated financial statements included in the 2022 Annual Report. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. These estimates, judgments and assumptions are based on historical data and experience available at the date of the accompanying condensed consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances. The Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, (ii) accounts receivable and allowances for credit losses, (iii) the useful lives of fixed assets and intangible assets, (iv) estimates of tax liabilities, (v) valuation of intangible assets and goodwill at time of acquisition and on a recurring basis, and (vi) valuation of investments. Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains an allowance for credit losses for expected uncollectible trade accounts receivable, which is recorded as an offset to trade accounts receivable, and changes in allowance for credit losses are classified as a general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. The Company assesses collectability by reviewing trade accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when it identifies specific customers that have deterioration in credit quality such that they may no longer share similar risk characteristics with the other receivables. In determining the amount of the allowance for credit losses, the Company uses a probability-of-default and loss given default model, which allows the ability to define a point of default and measure credit losses for receivables that have reached the point of default for purposes of calculating the allowance for credit losses. Loss given default represents the likelihood that a receivable that has reached the point of default will not be collected in full. The Company updates its probability-of-default and loss given default factors annually to incorporate the most recent historical data and adjusts the quantitative portion of the reserve through its qualitative reserve overlay. The Company looks at qualitative factors such as general economic conditions in determining expected credit losses. During the first quarters of 2023 and 2022, the Company recorded $( 113,000 ) and $ 11.6 million of provision for credit losses for trade accounts receivable, respectively. Redeemable Preferred Stock Investment The redeemable preferred stock investment of $ 13.0 million as of March 31, 2023 represents the fair value of redeemable preferred stock of a private company that the Company purchased in July 2021. The investment is classified as available-for-sale debt securit ies. The fair value of available-for-sale debt security is included in the Condensed Consolidated Statement of Balance Sheets. Unrealized gain of $ 597,000 is excluded from earnings and reported in other comprehensive loss in the first quarter of 2023, and unrealized loss of $ 4.4 million is ex cluded from earnings and reported in other comprehensive loss in the first quarter of 2022. Since the Company intends on holding the preferred stock, and the preferred stock is not redeemable until July 2027 , the investment is recorded as a long-term investment. Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) in the accompanying Condensed Consolidated Statements of Stockholders’ Equity. The Company and its subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, whereas reagents and supplies, property and nonmonetary assets and liabilities are measured at historical rates. Losses from these remeasurements were not significant in the first quarters of 2023 and 2022. Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of net unrealized gain or loss on available-for-sale d ebt securities, net of tax, and foreign currency translation adjustments from the Company's subsidiaries not using the U.S. dollar as their functional currency. There were no reclassifications from other comprehensive income (loss) to net loss in the first quarter of 2023, and reclassification from other comprehensive income (loss) to net earnings was not significant in the first quarter of 2022. The tax effects related to net unrealized loss on available-for-sale debt securities were $ 1.9 million and $ 4.5 million in the first quarters of 2023 and 2022, respectively . Concentration of Customers In certain periods, a small number of customers have accounted for a significant portion of the Company’s revenue. After aggregating customers that are under common control or affiliation, no customer contributed 10 % or more of the Company’s revenue in the first quarter of 2023, and one customer contributed 27 % of the Company’s revenue in the first quarter of 2022. One customer comprised 21 % and 17 % of total accounts receivable, net, as of March 31, 2023 and December 31, 2022, respectively. Disaggregation of Revenue The Company classifies its customers into three payor types: (i) Insurance, including claim reimbursement from the U.S. Health Resources and Services Administration, or H RSA, for uninsured individuals, (ii) Institutions, including hospitals, medical institutions, other laboratories, governmental bodies, municipalities and large corporations, or (iii) Patients who pay directly; as the Company believes these classifications best depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the first quarters of 2023 and 2022. Three Months Ended March 31, 2023 2022 (in thousands) Testing Services by payor Insurance $ 34,551 $ 210,677 Institutional 30,992 109,468 Patient 625 123 Total Revenue $ 66,168 $ 320,268 The insurance revenue category above includes zero and $ 106.7 million for the first quarters of 2023 and 2022, respectively, for services related to claims covered by the HRSA COVID-19 Uninsured Program. There was no material variable consideration recognized in the current period that relates to performance obligations that were completed in the prior period. Provided the Company has billed insurers accurately with complete information prior to the established filing deadline, collection of the Company’s net revenues from insurers is normally a function of providing complete and correct billing information within the various filing deadlines. If there has been a delay in billing, the Company determines if the amounts in question will likely go past the filing deadline, and if so, the Company will reserve accordingly for the billing. Contract Balances Receivables from contracts with customers - Receivables from contracts with customers are included within trade accounts receivable on the Condensed Consolidated Balance Sheets. Net receivable from Insurance and Institutional customers represented 14 % and 86 %, respectively, as of both March 31, 2023 and December 31, 2022. Contracts assets and liabilities - Contract assets from contracts with customers associated with contract execution and certain costs to fulfill a contract are included in other current assets in the accompanying Condensed Consolidated Balance Sheets. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. Contract liabilities are included in the Condensed Consolidated Balance Sheets. Revenues of $ 1.3 million and $ 11.1 million were recognized for the first quarters of 2023 and 2022, respectively, related to contract liabilities at the beginning of the respective periods. Customer Deposit Customer deposit in the accompanying Condensed Consolidated Balance Sheets consists of payments received from customers in excess of their outstanding trade accounts receivable balances. These deposits will be offset against future testing receivables or refunded to the customers. Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB, for consideration of their applicability. ASUs not included in the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Equity and Debt Securities
Equity and Debt Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Equity and Debt Securities | Note 3. Equity and Debt Securities The Company’s equity and debt securities consisted of the following: March 31, 2023 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 176,704 — ( 3,233 ) 173,471 Corporate debt securities 119,175 — ( 2,383 ) 116,792 U.S. agency debt securities 87,707 67 ( 476 ) 87,298 U.S. treasury bills 67,944 1 ( 62 ) 67,883 Money market accounts 11,902 — — 11,902 Municipal bonds 7,885 — ( 72 ) 7,813 Less: Cash equivalents ( 26,846 ) — — ( 26,846 ) Total debt securities due within 1 year 444,471 68 ( 6,226 ) 438,313 After 1 year through 5 years U.S. government debt securities 185,378 725 ( 3,838 ) 182,265 U.S. agency debt securities 123,823 229 ( 2,456 ) 121,596 Corporate debt securities 51,058 — ( 2,717 ) 48,341 Municipal bonds 10,553 2 ( 121 ) 10,434 Yankee debt securities 753 — ( 81 ) 672 Redeemable preferred stock investment 20,000 — ( 7,018 ) 12,982 Total debt securities due after 1 year through 5 years 391,565 956 ( 16,231 ) 376,290 After 5 years through 10 years Municipal bonds 3,580 — ( 55 ) 3,525 Total debt securities due after 5 years through 10 years 3,580 — ( 55 ) 3,525 Total available-for-sale debt securities 839,616 1,024 ( 22,512 ) 818,128 Total equity and debt securities $ 854,616 $ 1,024 $ ( 22,512 ) $ 833,128 December 31, 2022 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 189,333 — ( 3,373 ) 185,960 Corporate debt securities 120,480 — ( 2,222 ) 118,258 U.S. treasury bills 69,991 — ( 193 ) 69,798 U.S. agency debt securities 68,411 — ( 342 ) 68,069 Money market accounts 27,455 — — 27,455 Municipal bonds 7,371 — ( 80 ) 7,291 Yankee debt securities 2,347 — ( 5 ) 2,342 Less: Cash equivalents ( 32,444 ) — — ( 32,444 ) Total debt securities due within 1 year 452,944 — ( 6,215 ) 446,729 After 1 year through 5 years U.S. government debt securities 152,435 2 ( 6,349 ) 146,088 U.S. agency debt securities 92,054 — ( 3,435 ) 88,619 Corporate debt securities 80,647 — ( 4,756 ) 75,891 Municipal bonds 12,065 — ( 217 ) 11,848 Yankee debt securities 753 — ( 85 ) 668 Redeemable preferred stock investment 20,000 — ( 7,615 ) 12,385 Total debt securities due after 1 year through 5 years 357,954 2 ( 22,457 ) 335,499 After 5 years through 10 years Municipal bonds 3,617 — ( 83 ) 3,534 Total debt securities due after 5 years through 10 years 3,617 — ( 83 ) 3,534 Total available-for-sale debt securities 814,515 2 ( 28,755 ) 785,762 Total equity and debt securities $ 829,515 $ 2 $ ( 28,755 ) $ 800,762 Gross unrealized losses on the Company’s equity and debt securities were $ 22.5 million and $ 28.8 million as of March 31, 2023 and December 31, 2022, respectively. The Company did not recognize any credit losses for its available-for-sale debt securities during the first quarters of 2023 and 2022. The Company’s marketable securities of $ 478.0 million, managed by the custodian of the Company’s marketable debt security investment account, of which the Company has an outstanding margin loan, is used as collateral for the margin account borrowing. See Note 8, Debt, Commitments and Contingencies , for more information on the margin loan. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4. Fair Value Measurements The authoritative guidance on fair value measurements establishes a framework with respect to measuring assets and liabilities at fair value on a recurring basis and non-recurring basis. Under the framework, fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as of the measurement date. The framework also establishes a three-tier hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors market participants would use in valuing the asset or liability and are developed based on the best information available in the circumstances. The hierarchy consists of the following three levels: Level 1: Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity can access at the measurement date. Level 2: Inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs are unobservable for the asset or liability. The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the above three-tier fair value hierarchy: March 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 355,736 $ — $ 355,736 $ — U.S. agency debt securities 208,894 — 208,894 — Corporate debt securities 165,133 — 165,133 — U.S. treasury bills 67,883 67,883 — — Municipal bonds 21,772 — 21,772 — Preferred stock of privately held company 15,000 — — 15,000 Redeemable preferred stock investment 12,982 — — 12,982 Money market accounts 11,902 11,902 — — Yankee debt securities 672 — 672 — Total equity securities, debt securities and cash equivalents $ 859,974 $ 79,785 $ 752,207 $ 27,982 December 31, 2022 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 332,048 $ — $ 332,048 $ — Corporate debt securities 194,149 — 194,149 — U.S. agency debt securities 156,688 — 156,688 — U.S. treasury bills 69,798 69,798 — — Money market accounts 27,455 27,455 — — Municipal bonds 22,673 — 22,673 — Preferred stock of privately held company 15,000 — — 15,000 Redeemable preferred stock investment 12,385 — — 12,385 Yankee debt securities 3,010 — 3,010 — Total equity securities, debt securities and cash equivalents $ 833,206 $ 97,253 $ 708,568 $ 27,385 The Company’s Level 1 assets include U.S. treasury bills and money market instruments, and are valued based upon observable market prices. Level 2 assets consist of U.S. government and U.S. agency debt securities, municipal bonds, corporate debt securities and Yankee debt securities. Level 2 securities are valued based upon observable inputs that include reported trades, broker/dealer quotes, bids and offers. As of March 31, 2023, the Company had preferred stock of a privately held company, which was included in other long-term assets in the accompanying Condensed Consolidated Balance Sheets, and redeemable preferred stock of a private company that were measured using unobservable (Level 3) inputs. The fair value of redeemable preferred stock as of March 31, 2023 and December 31, 2022 was based on valuation performed by a third-party valuation company utilizing the guideline public company method under market approach and the discounted cash flow method under income approach. For the value of the investment in private equity securities, the Company elected to measure it at cost minus impairment, as the preferred stock of the privately held company did not have a readily determinable fair value, and no impairment loss was recorded as of March 31, 2023. There were no transfers between fair value measurement levels during the first quarters of 2023 and 2022. |
Fixed Assets
Fixed Assets | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Fixed Assets | Note 5. Fixed Assets Major classes of fixed assets consisted of the following: March 31, December 31, Useful Lives 2023 2022 (in thousands) Medical lab equipment 5 months to 12 Years $ 53,523 $ 53,503 Leasehold improvements Shorter of lease term or estimated useful life 11,824 11,804 Computer software 1 to 5 Years 8,079 6,982 Computer hardware 1 to 5 Years 7,238 6,979 Building 39 Years 6,731 6,731 Aircraft 7 Years 6,400 6,400 Building improvements 6 months to 39 Years 5,878 5,865 Furniture and fixtures 1 to 5 Years 3,822 4,248 Land improvements 5 to 15 Years 904 904 Automobile 2 to 7 Years 506 797 General equipment 3 to 5 Years 44 44 Land 7,500 7,500 Assets not yet placed in service 12,773 12,877 Total 125,222 124,634 Less: Accumulated depreciation ( 46,139 ) ( 43,281 ) Fixed assets, net $ 79,083 $ 81,353 Depreciation expenses on fixed assets totaled $ 4.7 million and $ 3.7 million for the first quarters of 2023 and 2022, respectively. |
Other Significant Balance Sheet
Other Significant Balance Sheet Accounts | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Significant Balance Sheet Accounts | Note 6. Ot her Significant Balance Sheet Accounts Other current assets consisted of the following: March 31, December 31, 2023 2022 (in thousands) Prepaid income taxes $ 16,432 $ 15,434 Prepaid expenses 6,875 6,814 Reagents and supplies 4,722 4,280 Marketable securities interest receivable 3,844 2,525 Other receivable 816 19,836 Total $ 32,689 $ 48,889 Other long-term liabilities primarily include operating and finance lease liabilities, long-term, see Note 9, Leases , and notes payable, long-term, see Note 8, Debt, Commitments and Contingencies . |
Reporting Segment and Geographi
Reporting Segment and Geographic Information | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Reporting Segment and Geographic Information | Note 7. Reporting Segment and Geographic Information The Company views its operations and manages its business in one reporting segment. Long-lived assets were primarily located in the United States as of March 31, 2023 and December 31, 2022. Revenue by region during the first quarters of 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Revenue: United States $ 62,062 $ 317,190 Foreign 4,106 3,078 Total $ 66,168 $ 320,268 |
Debt, Commitments and Contingen
Debt, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Debt Commitments And Contingencies Disclosure [Abstract] | |
Debt, Commitments and Contingencies | Note 8. Debt, Commitments and Contingencies Debt As of March 31, 2023, the Company had an outstanding borrowing of $ 15.0 million under its margin account with the custodian of the Company’s marketable debt security investment account, Pershing Advisor Solutions, LLC, a BNY Mellon Company. Margin account borrowings were used for the purchase of real property located in El Monte, California in 2020. The securities in the brokerage account were used as collateral for the margin loan. The custodian can issue a margin call at any time. The interest rate on the margin loan was the effective federal funds rate, or EFFR, plus a spread. The EFFR and/or the spread can be changed by BNY Mellon at any time. The interest was 1 % at the time of withdrawal of $ 15.0 million from the margin account, and the interest rate at March 31, 2023 was 5 % . The Company did not make any other withdrawals from the margin account, and the outstanding balance is included in the accompanying Condensed Consolidated Balance Sheets. The related interest expenses for the first quarters of 2023 and 2022 were $ 200,000 and $ 29,000 , respectively. Notes payable as of March 31, 2023 consisted of $ 3.4 million of notes payable related to an installment sale contract the Company entered in February 2022 for a building and $ 5.2 million of notes payable to Xilong Scientific Co., or Xilong Scientific, by Fujian Fujun Gene Biotech Co., Ltd., or FF Gene Biotech. The notes payable related to the installment sale are due in February 2030, and the interest rate is 1.08 %. The current portion and noncurrent portion are $ 408,000 and $ 3.0 million , respectively, and the noncurrent portion is included in the other long-term liabilities in the accompanying Condensed Consolidated Balance Sheets. The notes payable to Xilong Scientific were extended to and are due on December 31, 2023, and the interest rate on the loan is 4.97 %. The related interest expenses for the first quarters of 2023 and 2022 were $ 75,000 and $ 78,000 , respectively. Operating Leases See Note 9, Leases , for further information. Purchase Obligations As of March 31, 2023, the Company had non-cancelable purchase obligations of $ 17.8 million , of which, $ 8.4 million for computer software and hardware, $ 3.3 million for services, $ 2.4 million for reagents and other supplies, and $ 487,000 for medical lab equipment are payable within twelve months, and $ 2.4 million for computer software and $ 885,000 for services are payable within the next thirty-six months. Contingencies From time to time, the Company may be subject to legal proceedings and claims arising in the ordinary course of business. In the opinion of management, the outcome of these matters would not have a material effect on the Company’s condensed consolidated financial position, results of operations or cash flows. The Company has received a Civil Investigative Demand, or CID, issued by the U.S. Department of Justice pursuant to the False Claims Act related to its investigation of allegations of medically unnecessary laboratory testing, improper billing for laboratory testing, and remuneration received or provided in violation of the Anti-Kickback Statute and the Stark Law. This CID requests information and records relating to certain of the Company’s customers named in the CID, which represent a small portion of the Company’s revenues. As previously disclosed in the Company’s Exchange Act reports, the SEC is also conducting a non-public formal investigation, which appears to relate to the matters raised in the CID requests and our Exchange Act reports filed for 2018 through 2020. The Company is fully cooperating with the U.S. Department of Justice and the SEC to promptly respond to the requests for information in this CID and investigation and does not presently expect this CID or resulting investigation or the SEC investigation to have a material adverse impact. However, the Company cannot predict when these matters will be resolved, the outcome of these matters, or their potential impact, which may ultimately be greater than what the Company currently expects. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 9. Leases Lessee The Company is a lessee to various non-cancelable operating leases with varying terms through March 2028 primarily for laboratory and office space and equipment. The Company has options to renew some of these leases after their expirations. On a lease-by-lease basis, the Company considers such options, which may be elected at the Company’s sole discretion, in determining the lease term. The Company also has various finance leases for lab equipment with varying terms through December 2026 , some of which were acquired in business combinations. The Company does not have any leases with variable lease payments. The Company’s operating lease agreements do not contain any residual value guarantees, material restrictive covenants, bargain purchase options, or asset retirement obligations. The Company’s headquarters are located in El Monte, California, which is comprised of various corporate offices and a laboratory certified under the Clinical Laboratory Improvement Amendments of 1988, or CLIA, accredited by the College of American Pathologists, or CAP, and licensed by the State of California Department of Public Health. Other CLIA-certified laboratories are located in Temple City, California; Irving, Texas; Needham, Massachusetts; Phoenix, Arizona; Alpharetta, Georgia; and New York, New York. The operating and finance lease right-of-use asset, short-term lease liabilities, and long-term lease liabilities as of March 31, 2023 and December 31, 2022 were as follows: March 31, December 31, 2023 2022 (in thousands) Operating lease ROU asset, net $ 13,227 $ 14,784 Operating lease liabilities, short term $ 6,095 $ 6,132 Operating lease liabilities, long term $ 7,309 $ 8,795 Finance lease ROU asset, net $ 2,543 $ 2,784 Finance lease liabilities, short term $ 954 $ 943 Finance lease liabilities, long term $ 1,575 $ 1,818 The following were operating and finance lease expenses: Three Months Ended March 31, 2023 2022 (in thousands) Operating lease cost $ 1,702 $ 538 Finance lease cost: Amortization of ROU assets 243 96 Interest on lease liabilities 27 14 Short-term lease cost 501 97 Total lease cost $ 2,473 $ 745 Supplemental information related to operating and finance leases were the following: March 31, 2023 Weighted average remaining lease term - operating leases 3.12 years Weighted average discount rate - operating leases 3.79 % Weighted average remaining lease term - finance lease 2.87 years Weighted average discount rate - finance lease 3.96 % The following is a maturity analysis of operating and finance lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases Finance Lease (in thousands) Year Ending December 31, 2023 (remaining 9 months) $ 4,929 $ 727 2024 4,073 1,033 2025 2,119 547 2026 1,522 366 2027 1,360 — Thereafter 216 — Total lease payments 14,219 2,673 Less imputed interest ( 815 ) ( 144 ) Total $ 13,404 $ 2,529 Lessor The Company leases out space in buildings it owns and leases to third-party tenants under noncancelable operating leases. As of March 31, 2023, the remaining lease terms range from 9 months to 21 months, including renewal options and may include rent escalation clauses. Lease income primarily represents fixed lease payments from tenants recognized on a straight-line basis over the application lease term. Variable lease income represents tenant payments for real estate taxes, insurance, and maintenance. The lease income was included in interest and other income, net, in the accompanying Condensed Consolidated Statements of Operations. Total lease income was as follows: Three Months Ended March 31, 2023 2022 (in thousands) Lease income $ 45 $ 97 Variable lease income — 1 Total lease income $ 45 $ 98 Future fixed lease payments from tenants for all noncancelable operating leases as March 31, 2023 are as follows: Lease Payments from Tenants (in thousands) Year Ending December 31, 2023 (remaining 9 months) $ 136 2024 94 Total $ 230 |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Note 10. Equity-Based Compensation The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Condensed Consolidated Statements of Operations as follows: Three Months Ended March 31, 2023 2022 (in thousands) Cost of revenue $ 2,394 $ 1,465 Research and development 3,448 1,921 Selling and marketing 1,361 825 General and administrative 3,062 1,405 Total $ 10,265 $ 5,616 |
Provision for Income Taxes
Provision for Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | Note 11. (Benefit from) Provision for Income Taxes The effective tax rate used for interim periods is the estimated annual effective consolidated tax rate, based on the current estimate of full year results, except that taxes related to specific events, if any, are recorded in the interim period in which they occur. The annual effective tax rate is based upon several significant estimates and judgments, including the estimated annual pre-tax income of the Company in each tax jurisdiction in which it operates, and the development of tax planning strategies during the year. In addition, the Company’s tax expense can be impacted by changes in tax rates or laws and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions. The Company recorded consolidated benefit from income taxes of $( 5.2 ) million for the first quarter of 2023 and a consolidated provision for income taxes of $ 48.4 million for the first quarter of 2022. The Company’s effective tax rate was ( 25 % ) for the first quarter of 2023 compared with 24 % for the first quarter of 2022. The Company is not currently under examination by any major income tax jurisdiction. During 2023, the statutes of limitations will lapse on the Company’s 2019 federal tax year and certain 2018 and 2019 state tax years. The Company does not believe the federal or state statute lapses or any other event will significantly impact the balance of unrecognized tax benefits in the next twelve months. |
Income (Loss) per Share
Income (Loss) per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Income (Loss) per Share | Note 12. Income (Loss) per Share The following table presents the calculation of basic and diluted income (loss) per share for the first quarters of 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands, except per share data) Net income (loss) attributable to Fulgent $ ( 15,340 ) $ 153,979 Weighted-average common shares—outstanding, basic 29,536 30,234 Weighted-average common shares—outstanding, diluted 29,536 31,240 Net income (loss) per common share, basic $ ( 0.52 ) $ 5.09 Net income (loss) per common share, diluted $ ( 0.52 ) $ 4.93 The following securities have been excluded from the calculation of diluted income (loss) per share because their effect would have been anti-dilutive: Three Months Ended March 31, 2023 2022 (in thousands) Options 211 5 Restricted Stock Units 2,040 352 Contingently Issuable Shares 371 — The anti-dilutive shares described above were calculated using the treasury stock method. In the first quarter of 2023, the Company had outstanding stock options and restricted stock unit and contingently issuable shares for held back related shares to the business combination of Fulgent Pharma that were excluded from the weighted-average share calculation for continuing operations due to the Company’s net loss positions. |
Related Parties
Related Parties | 3 Months Ended |
Mar. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Note 13. Related Parties Linda Marsh, who is a member of the Company’s Board of Directors, or the Board, is currently the Senior Executive Vice President of AHMC Healthcare Inc., or AHMC. The Company performs genetic testing and other testing services, on an arms-length basis, for AHMC, and the Company recognized $ 95,000 and $ 775,000 in revenue from AHMC in the first quarters of 2023 and 2022, respectively. As of March 31, 2023 and December 31, 2022, $ 66,000 and $ 93,000 , respectively, was owed to the Company by AHMC, which is included in trade accounts receivable, net, in the accompanying Condensed Consolidated Balance Sheets, in connection with this relationship. Ming Hsieh, the Chief Executive Officer and Chairperson of the Board, is on the board of directors and a 20 % owner of ANP Technologies, Inc., or ANP, from which the Company purchased COVID-19 antigen rapid test kits and entered into certain drug-related licensing and development service agreements. The President and Chief Scientific Officer of Fulgent Pharma, Ray Yin, is the Founder, President and Chief Technology Officer of ANP. The Company incurred $ 959,000 related to the licensing and development services and purchases of COVID-19 antigen rapid test kits in the first quarter of 2023. No costs were incurred in the first quarter of 2022. As of March 31, 2023, and December 31, 2022, $ 890,000 and $ 607,000 , respectively, were owed to ANP by the Company in connection with these relationships. |
Goodwill and Acquisition-Relate
Goodwill and Acquisition-Related Intangibles | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquisition-Related Intangibles | Note 14. Goodwill and Acquisition-Related Intangibles Summaries of goodwill and intangibles balances assets as of March 31, 2023 and December 31, 2022 were as follows: March 31, December 31, Weighted-Average Amortization Period 2023 2022 (in thousands) Goodwill $ 143,120 $ 143,027 In-process research & development n/a $ 64,590 $ 64,590 Royalty-free technology 10 Years 5,388 5,364 Less: accumulated amortization ( 1,033 ) ( 894 ) Royalty-free technology, net 4,355 4,470 Customer relationships 13 Years 82,755 82,750 Less: accumulated amortization ( 7,814 ) ( 6,215 ) Customer relationships, net 74,941 76,535 Trade name 8 Years 3,790 3,790 Less: accumulated amortization ( 535 ) ( 412 ) Trade name, net 3,255 3,378 In-place lease intangible assets 5 Years 360 360 Less: accumulated amortization ( 64 ) ( 46 ) In-place lease intangible assets, net 296 314 Laboratory information system platform 5 Years 1,860 1,860 Less: accumulated amortization ( 620 ) ( 527 ) Laboratory information system platform, net 1,240 1,333 Purchased patent 10 Years 29 29 Less: accumulated amortization ( 7 ) ( 6 ) Purchased patent, net 22 23 Total intangible assets, net $ 148,699 $ 150,643 Acquisition-related intangibles included in the above tables are generally finite-lived and are carried at cost less accumulated amortization, except for In-Process Research and Development, or IPR&D, which is related to a business combination in 2022 and has an indefinite life until research and development efforts are completed or abandoned. All other finite-lived acquisition-related intangibles related to the business combinations in 2022 and 2021 are amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized. Changes in the carrying amount of goodwill for the first quarter of 2023 are as follows: Amounts (in thousands) Balance as of January 1, 2023 Goodwill $ 143,027 Accumulated impairment losses — 143,027 Net foreign currency exchange differences 93 Balance as of March 31, 2023 Goodwill 143,120 Accumulated impairment losses — 143,120 Based on the carrying value of finite-lived intangible assets recorded as of March 31, 2023, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows: Amounts (in thousands) Year Ending December 31, 2023 (remaining 9 months) $ 5,900 2024 7,867 2025 7,867 2026 7,557 2027 7,228 2028 7,193 Thereafter 40,497 Total $ 84,109 |
Stock Repurchase Program
Stock Repurchase Program | 3 Months Ended |
Mar. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stock Repurchase Program | Note 15. Stock Repurchase Program In March 2022, the Board authorized a $ 250.0 million stock repurchase program. Under the stock repurchase program, the Company may repurchase shares from time to time in the open market or in privately negotiated transactions. The stock repurchase program has no expiration from the date of authorization. During the first quarters of 2023 and 2022, the Company did no t repurchase any shares of its common stock. As of March 31, 2023, a total of approximately $ 175.7 million remained available for future repurchases of its common stock under the stock repurchase program. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 16. Subsequent Events As of May 1, 2023, no subsequent events are being reported. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, as well as the reported amounts of revenue and expenses during the reporting periods. These estimates, judgments and assumptions are based on historical data and experience available at the date of the accompanying condensed consolidated financial statements, as well as various other factors management believes to be reasonable under the circumstances. The Company’s estimates and assumptions may evolve as conditions change. Actual results could differ significantly from these estimates. On an on-going basis, management evaluates its estimates, primarily those related to: (i) revenue recognition criteria, (ii) accounts receivable and allowances for credit losses, (iii) the useful lives of fixed assets and intangible assets, (iv) estimates of tax liabilities, (v) valuation of intangible assets and goodwill at time of acquisition and on a recurring basis, and (vi) valuation of investments. |
Trade Accounts Receivable and Allowance for Credit Losses | Trade Accounts Receivable and Allowance for Credit Losses Trade accounts receivable are stated at the amount the Company expects to collect. The Company maintains an allowance for credit losses for expected uncollectible trade accounts receivable, which is recorded as an offset to trade accounts receivable, and changes in allowance for credit losses are classified as a general and administrative expense in the accompanying Condensed Consolidated Statements of Operations. The Company assesses collectability by reviewing trade accounts receivable on a collective basis where similar risk characteristics exist and on an individual basis when it identifies specific customers that have deterioration in credit quality such that they may no longer share similar risk characteristics with the other receivables. In determining the amount of the allowance for credit losses, the Company uses a probability-of-default and loss given default model, which allows the ability to define a point of default and measure credit losses for receivables that have reached the point of default for purposes of calculating the allowance for credit losses. Loss given default represents the likelihood that a receivable that has reached the point of default will not be collected in full. The Company updates its probability-of-default and loss given default factors annually to incorporate the most recent historical data and adjusts the quantitative portion of the reserve through its qualitative reserve overlay. The Company looks at qualitative factors such as general economic conditions in determining expected credit losses. During the first quarters of 2023 and 2022, the Company recorded $( 113,000 ) and $ 11.6 million of provision for credit losses for trade accounts receivable, respectively. |
Redeemable Preferred Stock Investment | Redeemable Preferred Stock Investment The redeemable preferred stock investment of $ 13.0 million as of March 31, 2023 represents the fair value of redeemable preferred stock of a private company that the Company purchased in July 2021. The investment is classified as available-for-sale debt securit ies. The fair value of available-for-sale debt security is included in the Condensed Consolidated Statement of Balance Sheets. Unrealized gain of $ 597,000 is excluded from earnings and reported in other comprehensive loss in the first quarter of 2023, and unrealized loss of $ 4.4 million is ex cluded from earnings and reported in other comprehensive loss in the first quarter of 2022. Since the Company intends on holding the preferred stock, and the preferred stock is not redeemable until July 2027 , the investment is recorded as a long-term investment. |
Foreign Currency Translation and Foreign Currency Transactions | Foreign Currency Translation and Foreign Currency Transactions The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of each period. Expenses for these subsidiaries are translated using rates that approximate those in effect during the period. Gains and losses from these translations are recognized in foreign currency translation included in accumulated other comprehensive income (loss) in the accompanying Condensed Consolidated Statements of Stockholders’ Equity. The Company and its subsidiaries that use the U.S. dollar as their functional currency remeasure monetary assets and liabilities at exchange rates in effect at the end of each period, whereas reagents and supplies, property and nonmonetary assets and liabilities are measured at historical rates. Losses from these remeasurements were not significant in the first quarters of 2023 and 2022. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) is comprised of net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) consists of net unrealized gain or loss on available-for-sale d ebt securities, net of tax, and foreign currency translation adjustments from the Company's subsidiaries not using the U.S. dollar as their functional currency. There were no reclassifications from other comprehensive income (loss) to net loss in the first quarter of 2023, and reclassification from other comprehensive income (loss) to net earnings was not significant in the first quarter of 2022. The tax effects related to net unrealized loss on available-for-sale debt securities were $ 1.9 million and $ 4.5 million in the first quarters of 2023 and 2022, respectively . |
Concentration of Customers | Concentration of Customers In certain periods, a small number of customers have accounted for a significant portion of the Company’s revenue. After aggregating customers that are under common control or affiliation, no customer contributed 10 % or more of the Company’s revenue in the first quarter of 2023, and one customer contributed 27 % of the Company’s revenue in the first quarter of 2022. One customer comprised 21 % and 17 % of total accounts receivable, net, as of March 31, 2023 and December 31, 2022, respectively. |
Revenue from Contracts with Customers | Disaggregation of Revenue The Company classifies its customers into three payor types: (i) Insurance, including claim reimbursement from the U.S. Health Resources and Services Administration, or H RSA, for uninsured individuals, (ii) Institutions, including hospitals, medical institutions, other laboratories, governmental bodies, municipalities and large corporations, or (iii) Patients who pay directly; as the Company believes these classifications best depict how the nature, amount, timing, and uncertainty of its revenue and cash flows are affected by economic factors. The following table summarizes revenue from contracts with customers by payor type for the first quarters of 2023 and 2022. Three Months Ended March 31, 2023 2022 (in thousands) Testing Services by payor Insurance $ 34,551 $ 210,677 Institutional 30,992 109,468 Patient 625 123 Total Revenue $ 66,168 $ 320,268 The insurance revenue category above includes zero and $ 106.7 million for the first quarters of 2023 and 2022, respectively, for services related to claims covered by the HRSA COVID-19 Uninsured Program. There was no material variable consideration recognized in the current period that relates to performance obligations that were completed in the prior period. Provided the Company has billed insurers accurately with complete information prior to the established filing deadline, collection of the Company’s net revenues from insurers is normally a function of providing complete and correct billing information within the various filing deadlines. If there has been a delay in billing, the Company determines if the amounts in question will likely go past the filing deadline, and if so, the Company will reserve accordingly for the billing. Contract Balances Receivables from contracts with customers - Receivables from contracts with customers are included within trade accounts receivable on the Condensed Consolidated Balance Sheets. Net receivable from Insurance and Institutional customers represented 14 % and 86 %, respectively, as of both March 31, 2023 and December 31, 2022. Contracts assets and liabilities - Contract assets from contracts with customers associated with contract execution and certain costs to fulfill a contract are included in other current assets in the accompanying Condensed Consolidated Balance Sheets. Contract liabilities are recorded when the Company receives payment prior to completing its obligation to transfer goods or services to a customer. Contract liabilities are included in the Condensed Consolidated Balance Sheets. Revenues of $ 1.3 million and $ 11.1 million were recognized for the first quarters of 2023 and 2022, respectively, related to contract liabilities at the beginning of the respective periods. |
Customer Deposit | Customer Deposit Customer deposit in the accompanying Condensed Consolidated Balance Sheets consists of payments received from customers in excess of their outstanding trade accounts receivable balances. These deposits will be offset against future testing receivables or refunded to the customers. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company evaluates all Accounting Standards Updates, or ASUs, issued by the Financial Accounting Standards Board, or FASB, for consideration of their applicability. ASUs not included in the Company’s disclosures were assessed and determined to be either not applicable or are not expected to have a material impact on the Company’s condensed consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Standards Update 2014-09 | |
Summary of Revenue from Contracts with Customers by Payor Type | The following table summarizes revenue from contracts with customers by payor type for the first quarters of 2023 and 2022. Three Months Ended March 31, 2023 2022 (in thousands) Testing Services by payor Insurance $ 34,551 $ 210,677 Institutional 30,992 109,468 Patient 625 123 Total Revenue $ 66,168 $ 320,268 |
Equity and Debt Securities (Tab
Equity and Debt Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Equity and Debt Securities | The Company’s equity and debt securities consisted of the following: March 31, 2023 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 176,704 — ( 3,233 ) 173,471 Corporate debt securities 119,175 — ( 2,383 ) 116,792 U.S. agency debt securities 87,707 67 ( 476 ) 87,298 U.S. treasury bills 67,944 1 ( 62 ) 67,883 Money market accounts 11,902 — — 11,902 Municipal bonds 7,885 — ( 72 ) 7,813 Less: Cash equivalents ( 26,846 ) — — ( 26,846 ) Total debt securities due within 1 year 444,471 68 ( 6,226 ) 438,313 After 1 year through 5 years U.S. government debt securities 185,378 725 ( 3,838 ) 182,265 U.S. agency debt securities 123,823 229 ( 2,456 ) 121,596 Corporate debt securities 51,058 — ( 2,717 ) 48,341 Municipal bonds 10,553 2 ( 121 ) 10,434 Yankee debt securities 753 — ( 81 ) 672 Redeemable preferred stock investment 20,000 — ( 7,018 ) 12,982 Total debt securities due after 1 year through 5 years 391,565 956 ( 16,231 ) 376,290 After 5 years through 10 years Municipal bonds 3,580 — ( 55 ) 3,525 Total debt securities due after 5 years through 10 years 3,580 — ( 55 ) 3,525 Total available-for-sale debt securities 839,616 1,024 ( 22,512 ) 818,128 Total equity and debt securities $ 854,616 $ 1,024 $ ( 22,512 ) $ 833,128 December 31, 2022 Amortized Unrealized Unrealized Aggregate (in thousands) Equity securities: Long-term Preferred stock of privately held company $ 15,000 $ — $ — $ 15,000 Total equity securities 15,000 — — 15,000 Available-for-sale debt securities Short-term U.S. government debt securities 189,333 — ( 3,373 ) 185,960 Corporate debt securities 120,480 — ( 2,222 ) 118,258 U.S. treasury bills 69,991 — ( 193 ) 69,798 U.S. agency debt securities 68,411 — ( 342 ) 68,069 Money market accounts 27,455 — — 27,455 Municipal bonds 7,371 — ( 80 ) 7,291 Yankee debt securities 2,347 — ( 5 ) 2,342 Less: Cash equivalents ( 32,444 ) — — ( 32,444 ) Total debt securities due within 1 year 452,944 — ( 6,215 ) 446,729 After 1 year through 5 years U.S. government debt securities 152,435 2 ( 6,349 ) 146,088 U.S. agency debt securities 92,054 — ( 3,435 ) 88,619 Corporate debt securities 80,647 — ( 4,756 ) 75,891 Municipal bonds 12,065 — ( 217 ) 11,848 Yankee debt securities 753 — ( 85 ) 668 Redeemable preferred stock investment 20,000 — ( 7,615 ) 12,385 Total debt securities due after 1 year through 5 years 357,954 2 ( 22,457 ) 335,499 After 5 years through 10 years Municipal bonds 3,617 — ( 83 ) 3,534 Total debt securities due after 5 years through 10 years 3,617 — ( 83 ) 3,534 Total available-for-sale debt securities 814,515 2 ( 28,755 ) 785,762 Total equity and debt securities $ 829,515 $ 2 $ ( 28,755 ) $ 800,762 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy | The following tables present information about the Company’s financial assets measured at fair value on a recurring basis, based on the above three-tier fair value hierarchy: March 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 355,736 $ — $ 355,736 $ — U.S. agency debt securities 208,894 — 208,894 — Corporate debt securities 165,133 — 165,133 — U.S. treasury bills 67,883 67,883 — — Municipal bonds 21,772 — 21,772 — Preferred stock of privately held company 15,000 — — 15,000 Redeemable preferred stock investment 12,982 — — 12,982 Money market accounts 11,902 11,902 — — Yankee debt securities 672 — 672 — Total equity securities, debt securities and cash equivalents $ 859,974 $ 79,785 $ 752,207 $ 27,982 December 31, 2022 Total Level 1 Level 2 Level 3 (in thousands) Equity securities, debt securities and cash equivalents: U.S. government debt securities $ 332,048 $ — $ 332,048 $ — Corporate debt securities 194,149 — 194,149 — U.S. agency debt securities 156,688 — 156,688 — U.S. treasury bills 69,798 69,798 — — Money market accounts 27,455 27,455 — — Municipal bonds 22,673 — 22,673 — Preferred stock of privately held company 15,000 — — 15,000 Redeemable preferred stock investment 12,385 — — 12,385 Yankee debt securities 3,010 — 3,010 — Total equity securities, debt securities and cash equivalents $ 833,206 $ 97,253 $ 708,568 $ 27,385 |
Fixed Assets (Tables)
Fixed Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Major Classes of Fixed Assets | Major classes of fixed assets consisted of the following: March 31, December 31, Useful Lives 2023 2022 (in thousands) Medical lab equipment 5 months to 12 Years $ 53,523 $ 53,503 Leasehold improvements Shorter of lease term or estimated useful life 11,824 11,804 Computer software 1 to 5 Years 8,079 6,982 Computer hardware 1 to 5 Years 7,238 6,979 Building 39 Years 6,731 6,731 Aircraft 7 Years 6,400 6,400 Building improvements 6 months to 39 Years 5,878 5,865 Furniture and fixtures 1 to 5 Years 3,822 4,248 Land improvements 5 to 15 Years 904 904 Automobile 2 to 7 Years 506 797 General equipment 3 to 5 Years 44 44 Land 7,500 7,500 Assets not yet placed in service 12,773 12,877 Total 125,222 124,634 Less: Accumulated depreciation ( 46,139 ) ( 43,281 ) Fixed assets, net $ 79,083 $ 81,353 |
Other Significant Balance She_2
Other Significant Balance Sheet Accounts (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: March 31, December 31, 2023 2022 (in thousands) Prepaid income taxes $ 16,432 $ 15,434 Prepaid expenses 6,875 6,814 Reagents and supplies 4,722 4,280 Marketable securities interest receivable 3,844 2,525 Other receivable 816 19,836 Total $ 32,689 $ 48,889 |
Reporting Segment and Geograp_2
Reporting Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Summary of Revenue by Geographic Region | Revenue by region during the first quarters of 2023 and 2022 were as follows: Three Months Ended March 31, 2023 2022 (in thousands) Revenue: United States $ 62,062 $ 317,190 Foreign 4,106 3,078 Total $ 66,168 $ 320,268 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Operating and Finance Lease Right-of-Use Asset, Short-term Lease Liabilities, and Long-term Lease Liabilities | The operating and finance lease right-of-use asset, short-term lease liabilities, and long-term lease liabilities as of March 31, 2023 and December 31, 2022 were as follows: March 31, December 31, 2023 2022 (in thousands) Operating lease ROU asset, net $ 13,227 $ 14,784 Operating lease liabilities, short term $ 6,095 $ 6,132 Operating lease liabilities, long term $ 7,309 $ 8,795 Finance lease ROU asset, net $ 2,543 $ 2,784 Finance lease liabilities, short term $ 954 $ 943 Finance lease liabilities, long term $ 1,575 $ 1,818 |
Schedule of Operating and Finance Lease Expenses | The following were operating and finance lease expenses: Three Months Ended March 31, 2023 2022 (in thousands) Operating lease cost $ 1,702 $ 538 Finance lease cost: Amortization of ROU assets 243 96 Interest on lease liabilities 27 14 Short-term lease cost 501 97 Total lease cost $ 2,473 $ 745 |
Schedule of Supplemental Information Related to Operating and Finance Leases | Supplemental information related to operating and finance leases were the following: March 31, 2023 Weighted average remaining lease term - operating leases 3.12 years Weighted average discount rate - operating leases 3.79 % Weighted average remaining lease term - finance lease 2.87 years Weighted average discount rate - finance lease 3.96 % |
Schedule of Maturity Analysis of Operating and Finance Lease Liabilities using Undiscounted Cash Flows on an Annual Basis | The following is a maturity analysis of operating and finance lease liabilities using undiscounted cash flows on an annual basis with renewal periods included: Operating Leases Finance Lease (in thousands) Year Ending December 31, 2023 (remaining 9 months) $ 4,929 $ 727 2024 4,073 1,033 2025 2,119 547 2026 1,522 366 2027 1,360 — Thereafter 216 — Total lease payments 14,219 2,673 Less imputed interest ( 815 ) ( 144 ) Total $ 13,404 $ 2,529 |
Schedule of Lease Income | Total lease income was as follows: Three Months Ended March 31, 2023 2022 (in thousands) Lease income $ 45 $ 97 Variable lease income — 1 Total lease income $ 45 $ 98 |
Schedule of Future Fixed Lease Payments from Tenants for All Noncancelable Operating Leases | Future fixed lease payments from tenants for all noncancelable operating leases as March 31, 2023 are as follows: Lease Payments from Tenants (in thousands) Year Ending December 31, 2023 (remaining 9 months) $ 136 2024 94 Total $ 230 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Equity-Based Compensation | The Company has included equity-based compensation expense as part of cost of revenue and operating expenses in the accompanying Condensed Consolidated Statements of Operations as follows: Three Months Ended March 31, 2023 2022 (in thousands) Cost of revenue $ 2,394 $ 1,465 Research and development 3,448 1,921 Selling and marketing 1,361 825 General and administrative 3,062 1,405 Total $ 10,265 $ 5,616 |
Income (Loss) per Share (Tables
Income (Loss) per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Basic and Diluted Income (loss) Per Share Computations | The following table presents the calculation of basic and diluted income (loss) per share for the first quarters of 2023 and 2022: Three Months Ended March 31, 2023 2022 (in thousands, except per share data) Net income (loss) attributable to Fulgent $ ( 15,340 ) $ 153,979 Weighted-average common shares—outstanding, basic 29,536 30,234 Weighted-average common shares—outstanding, diluted 29,536 31,240 Net income (loss) per common share, basic $ ( 0.52 ) $ 5.09 Net income (loss) per common share, diluted $ ( 0.52 ) $ 4.93 |
Anti-dilutive Securities Excluded from Calculation of Diluted Income (Loss) Per Share | The following securities have been excluded from the calculation of diluted income (loss) per share because their effect would have been anti-dilutive: Three Months Ended March 31, 2023 2022 (in thousands) Options 211 5 Restricted Stock Units 2,040 352 Contingently Issuable Shares 371 — |
Goodwill and Acquisition-Rela_2
Goodwill and Acquisition-Related Intangibles (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summaries of Goodwill and Acquisitions-Related Intangibles Balances | Summaries of goodwill and intangibles balances assets as of March 31, 2023 and December 31, 2022 were as follows: March 31, December 31, Weighted-Average Amortization Period 2023 2022 (in thousands) Goodwill $ 143,120 $ 143,027 In-process research & development n/a $ 64,590 $ 64,590 Royalty-free technology 10 Years 5,388 5,364 Less: accumulated amortization ( 1,033 ) ( 894 ) Royalty-free technology, net 4,355 4,470 Customer relationships 13 Years 82,755 82,750 Less: accumulated amortization ( 7,814 ) ( 6,215 ) Customer relationships, net 74,941 76,535 Trade name 8 Years 3,790 3,790 Less: accumulated amortization ( 535 ) ( 412 ) Trade name, net 3,255 3,378 In-place lease intangible assets 5 Years 360 360 Less: accumulated amortization ( 64 ) ( 46 ) In-place lease intangible assets, net 296 314 Laboratory information system platform 5 Years 1,860 1,860 Less: accumulated amortization ( 620 ) ( 527 ) Laboratory information system platform, net 1,240 1,333 Purchased patent 10 Years 29 29 Less: accumulated amortization ( 7 ) ( 6 ) Purchased patent, net 22 23 Total intangible assets, net $ 148,699 $ 150,643 |
Summary of Carrying Amount of Goodwill | Changes in the carrying amount of goodwill for the first quarter of 2023 are as follows: Amounts (in thousands) Balance as of January 1, 2023 Goodwill $ 143,027 Accumulated impairment losses — 143,027 Net foreign currency exchange differences 93 Balance as of March 31, 2023 Goodwill 143,120 Accumulated impairment losses — 143,120 |
Summary of Annual Amortization Expense For Acquisition-Related Intangibles | Based on the carrying value of finite-lived intangible assets recorded as of March 31, 2023, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows: Amounts (in thousands) Year Ending December 31, 2023 (remaining 9 months) $ 5,900 2024 7,867 2025 7,867 2026 7,557 2027 7,228 2028 7,193 Thereafter 40,497 Total $ 84,109 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) Customer | Mar. 31, 2022 USD ($) Customer | Dec. 31, 2022 USD ($) Customer | |
Summary Of Significant Accounting Policies [Line Items] | |||
Contract with customer liability, revenue recognized | $ 1,300,000 | $ 11,100,000 | |
Provision for credit losses for trade accounts receivable | (113,000) | $ 11,574,000 | |
Redeemable preferred stock investment | 12,982,000 | $ 12,385,000 | |
Unrealized gain (loss) | $ 597,000 | (4,400,000) | |
Preferred stock, redemption date | Jul. 31, 2027 | ||
Foreign currency translation gain | $ 168,000 | 123,000 | |
Tax effects related to unrealized holding loss on available-for-sale debt securities | 1,900,000 | 4,500,000 | |
Revenue | 66,168,000 | 320,268,000 | |
Clinical Insurance Contracts | HSRA COVID-19 Uninsured Program | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Revenue | $ 0 | $ 106,700,000 | |
Insurance Customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of net accounts receivable from contract | 14% | 14% | |
Institutional Customer | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percentage of net accounts receivable from contract | 86% | 86% | |
Customer Concentration Risk | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 1 | ||
Customer Concentration Risk | Revenue | Customer One | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 27% | ||
Customer Concentration Risk | Accounts Receivable | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 1 | 1 | |
Customer Concentration Risk | Accounts Receivable | Customer One | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Concentration risk, percentage | 21% | 17% | |
Minimum | Customer Concentration Risk | Revenue | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Number of customers | Customer | 0 | ||
Concentration risk, percentage | 10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Revenue from Contracts with Customers by Payor Type (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation Of Revenue [Line Items] | ||
Revenue from contracts with customers by payor type | $ 66,168 | $ 320,268 |
Accounting Standards Update 2014-09 | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from contracts with customers by payor type | 66,168 | 320,268 |
Accounting Standards Update 2014-09 | Clinical Insurance Contracts | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from contracts with customers by payor type | 34,551 | 210,677 |
Accounting Standards Update 2014-09 | Clinical Institutional Contracts | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from contracts with customers by payor type | 30,992 | 109,468 |
Accounting Standards Update 2014-09 | Clinical Patients Contracts | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue from contracts with customers by payor type | $ 625 | $ 123 |
Equity and Debt Securities - Su
Equity and Debt Securities - Summary of Equity and Debt Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Cash and cash equivalents | $ 66,172 | $ 79,506 |
Less: Cash equivalents, Carrying Value | (26,846) | (32,444) |
Less: Cash equivalents, Fair Value | (26,846) | (32,444) |
Equity and debt securities, Amortized Cost Basis | 854,616 | 829,515 |
Equity and debt securities, Unrealized Gains | 1,024 | 2 |
Equity and debt securities, Unrealized Losses | (22,512) | (28,755) |
Equity and debt securities, Aggregate Fair Value | 833,128 | 800,762 |
Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 839,616 | 814,515 |
Debt securities, Unrealized Gains | 1,024 | 2 |
Debt securities, Unrealized Losses | (22,512) | (28,755) |
Debt securities, Aggregate Fair Value | 818,128 | 785,762 |
Short-Term Marketable Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 444,471 | 452,944 |
Debt securities, Unrealized Gains | 68 | |
Debt securities, Unrealized Losses | (6,226) | (6,215) |
Debt securities, Aggregate Fair Value | 438,313 | 446,729 |
Short-Term Marketable Securities | U.S. Government Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 176,704 | 189,333 |
Debt securities, Unrealized Losses | (3,233) | (3,373) |
Debt securities, Aggregate Fair Value | 173,471 | 185,960 |
Short-Term Marketable Securities | Corporate Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 119,175 | 120,480 |
Debt securities, Unrealized Losses | (2,383) | (2,222) |
Debt securities, Aggregate Fair Value | 116,792 | 118,258 |
Short-Term Marketable Securities | U.S. Agency Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 87,707 | 68,411 |
Debt securities, Unrealized Gains | 67 | |
Debt securities, Unrealized Losses | (476) | (342) |
Debt securities, Aggregate Fair Value | 87,298 | 68,069 |
Short-Term Marketable Securities | U.S. Treasury Bills | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 67,944 | 69,991 |
Debt securities, Unrealized Gains | 1 | |
Debt securities, Unrealized Losses | (62) | (193) |
Debt securities, Aggregate Fair Value | 67,883 | 69,798 |
Short-Term Marketable Securities | Money Market Accounts | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Cash and cash equivalents | 11,902 | |
Cash and cash equivalents fair value disclosure | 11,902 | |
Short-Term Marketable Securities | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 7,885 | 7,371 |
Debt securities, Unrealized Losses | (72) | (80) |
Debt securities, Aggregate Fair Value | 7,813 | 7,291 |
Short-Term Marketable Securities | Yankee Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 2,347 | |
Debt securities, Unrealized Losses | (5) | |
Debt securities, Aggregate Fair Value | 2,342 | |
Short-Term Equity Securities | Money Market Accounts | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Cash and cash equivalents | 27,455 | |
Cash and cash equivalents fair value disclosure | 27,455 | |
Long Term Equity Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 15,000 | 15,000 |
Marketable and non-marketable securities, Aggregate Fair Value | 15,000 | 15,000 |
Long Term Equity Securities | Preferred Stock Of Privately Held Company | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Marketable and non-marketable securities, Amortized Cost Basis | 15,000 | 15,000 |
Marketable and non-marketable securities, Aggregate Fair Value | 15,000 | 15,000 |
Debt Securities due After 1 Year through 5 Years | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 391,565 | 357,954 |
Debt securities, Unrealized Gains | 956 | 2 |
Debt securities, Unrealized Losses | (16,231) | (22,457) |
Debt securities, Aggregate Fair Value | 376,290 | 335,499 |
Debt Securities due After 1 Year through 5 Years | U.S. Government Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 185,378 | 152,435 |
Debt securities, Unrealized Gains | 725 | 2 |
Debt securities, Unrealized Losses | (3,838) | (6,349) |
Debt securities, Aggregate Fair Value | 182,265 | 146,088 |
Debt Securities due After 1 Year through 5 Years | Corporate Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 51,058 | 80,647 |
Debt securities, Unrealized Losses | (2,717) | (4,756) |
Debt securities, Aggregate Fair Value | 48,341 | 75,891 |
Debt Securities due After 1 Year through 5 Years | U.S. Agency Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 123,823 | 92,054 |
Debt securities, Unrealized Gains | 229 | |
Debt securities, Unrealized Losses | (2,456) | (3,435) |
Debt securities, Aggregate Fair Value | 121,596 | 88,619 |
Debt Securities due After 1 Year through 5 Years | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 10,553 | 12,065 |
Debt securities, Unrealized Gains | 2 | |
Debt securities, Unrealized Losses | (121) | (217) |
Debt securities, Aggregate Fair Value | 10,434 | 11,848 |
Debt Securities due After 1 Year through 5 Years | Yankee Debt Securities | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 753 | 753 |
Debt securities, Unrealized Losses | (81) | (85) |
Debt securities, Aggregate Fair Value | 672 | 668 |
Debt Securities due After 1 Year through 5 Years | Redeemable Preferred Stock Investment | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 20,000 | 20,000 |
Debt securities, Unrealized Losses | (7,018) | (7,615) |
Debt securities, Aggregate Fair Value | 12,982 | 12,385 |
Debt Securities due After 5 Year through 10 Years | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 3,580 | 3,617 |
Debt securities, Unrealized Losses | (55) | (83) |
Debt securities, Aggregate Fair Value | 3,525 | 3,534 |
Debt Securities due After 5 Year through 10 Years | Municipal Bonds | ||
Schedule Of Trading Securities And Other Trading Assets [Line Items] | ||
Debt securities, Amortized Cost Basis | 3,580 | 3,617 |
Debt securities, Unrealized Losses | (55) | (83) |
Debt securities, Aggregate Fair Value | $ 3,525 | $ 3,534 |
Equity and Debt Securities - Ad
Equity and Debt Securities - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Schedule Of Available For Sale And Trading Securities [Line Items] | ||
Gross unrealized loss | $ 22,500 | $ 28,800 |
Outstanding borrowing amount | 14,999 | $ 14,999 |
Margin Account Borrowing | ||
Schedule Of Available For Sale And Trading Securities [Line Items] | ||
Total debt securities | $ 478,000 |
Fair Value Measurements - Infor
Fair Value Measurements - Information about Financial Assets Measured at Fair Value on Recurring Basis Based on Three-Tier Fair Value Hierarchy (Details) - Fair Value Measurements Recurring - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | $ 859,974 | $ 833,206 |
U.S. Government Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 355,736 | 332,048 |
Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 165,133 | 194,149 |
Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 11,902 | 27,455 |
U.S. Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 208,894 | 156,688 |
U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 67,883 | 69,798 |
Municipal Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 21,772 | 22,673 |
Preferred Stock Of Privately Held Company | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 15,000 | 15,000 |
Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 12,982 | 12,385 |
Yankee Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 672 | 3,010 |
Level 1 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 79,785 | 97,253 |
Level 1 | Money Market Accounts | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents fair value disclosure | 11,902 | 27,455 |
Level 1 | U.S. Treasury Bills | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 67,883 | 69,798 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 752,207 | 708,568 |
Level 2 | U.S. Government Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 355,736 | 332,048 |
Level 2 | Corporate Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 165,133 | 194,149 |
Level 2 | U.S. Agency Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 208,894 | 156,688 |
Level 2 | Municipal Bonds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 21,772 | 22,673 |
Level 2 | Yankee Debt Securities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 672 | 3,010 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total equity securities, debt securities and cash equivalents | 27,982 | 27,385 |
Level 3 | Preferred Stock Of Privately Held Company | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | 15,000 | 15,000 |
Level 3 | Redeemable Preferred Stock Investment | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total debt securities | $ 12,982 | $ 12,385 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Details) - USD ($) | Mar. 31, 2023 | Mar. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fair value assets, transfers between levels, amount | $ 0 | $ 0 |
Fixed Assets - Major Classes of
Fixed Assets - Major Classes of Fixed Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 125,222 | $ 124,634 |
Less: Accumulated depreciation | (46,139) | (43,281) |
Fixed assets, net | 79,083 | 81,353 |
Medical Lab Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 53,523 | 53,503 |
Medical Lab Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 months | |
Medical Lab Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 12 years | |
Leasehold Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 11,824 | 11,804 |
Useful life in years | Shorter of lease term or estimated useful life | |
Computer Hardware | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 7,238 | 6,979 |
Computer Hardware | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Computer Hardware | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Computer Software | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 8,079 | 6,982 |
Computer Software | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Computer Software | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Building | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,731 | 6,731 |
Useful life in years | 39 years | |
Aircraft | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 6,400 | 6,400 |
Useful life in years | 7 years | |
Building Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 5,878 | 5,865 |
Building Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 6 months | |
Building Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 39 years | |
Furniture and Fixtures | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 3,822 | 4,248 |
Furniture and Fixtures | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 1 year | |
Furniture and Fixtures | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Automobile | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 506 | 797 |
Automobile | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 2 years | |
Automobile | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 7 years | |
Land Improvements | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 904 | 904 |
Land Improvements | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land Improvements | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 15 years | |
General Equipment | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 44 | 44 |
General Equipment | Minimum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 3 years | |
General Equipment | Maximum | ||
Property Plant And Equipment [Line Items] | ||
Useful life in years | 5 years | |
Land | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 7,500 | 7,500 |
Assets Not Yet Placed in Service | ||
Property Plant And Equipment [Line Items] | ||
Fixed assets, gross | $ 12,773 | $ 12,877 |
Fixed Assets - Additional Infor
Fixed Assets - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense on fixed assets | $ 4.7 | $ 3.7 |
Other Significant Balance She_3
Other Significant Balance Sheet Accounts - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Prepaid income taxes | $ 16,432 | $ 15,434 |
Prepaid expenses | 6,875 | 6,814 |
Reagents and supplies | 4,722 | 4,280 |
Marketable securities interest receivable | 3,844 | 2,525 |
Other receivable | 816 | 19,836 |
Total | $ 32,689 | $ 48,889 |
Reporting Segment and Geograp_3
Reporting Segment and Geographical Information - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 1 |
Reporting Segment and Geograp_4
Reporting Segment and Geographical Information - Summary of Revenue by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 66,168 | $ 320,268 |
United States | ||
Segment Reporting Information [Line Items] | ||
Revenue | 62,062 | 317,190 |
Foreign | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 4,106 | $ 3,078 |
Debt, Commitments and Conting_2
Debt, Commitments and Contingencies - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt, Commitments and Contingencies [Line Items] | |||
Debt security investment outstanding borrowing amount | $ 15,000,000 | ||
Interest on loan withdrawn from margin account | 1% | ||
Payments for closing of escrow, financed under margin loan | $ 15,000,000 | ||
Interest rate | 5% | ||
Investment margin loan | $ 14,999,000 | $ 14,999,000 | |
Interest expense | 200,000 | $ 29,000 | |
Notes payable, current portion | 5,608,000 | $ 5,639,000 | |
Non-cancelable purchase obligations | 17,800,000 | ||
Reagents and Other Supplies | |||
Debt, Commitments and Contingencies [Line Items] | |||
Non-cancelable purchase obligations | 2,400,000 | ||
Services | |||
Debt, Commitments and Contingencies [Line Items] | |||
Non-cancelable purchase obligations | 3,300,000 | ||
Non-cancelable purchase obligations, payable within next thirty-six months | 885,000 | ||
Software | |||
Debt, Commitments and Contingencies [Line Items] | |||
Non-cancelable purchase obligations | 8,400,000 | ||
Non-cancelable purchase obligations, payable within next thirty-six months | 2,400,000 | ||
Medical Lab Equipment | |||
Debt, Commitments and Contingencies [Line Items] | |||
Non-cancelable purchase obligations, payable within twelve months | 487,000 | ||
Xilong Scientific | |||
Debt, Commitments and Contingencies [Line Items] | |||
Notes payable | 5,200,000 | ||
Xilong Scientific | FF Gene Biotech | |||
Debt, Commitments and Contingencies [Line Items] | |||
Interest expense | $ 75,000 | $ 78,000 | |
Debt instrument, interest rate terms | The notes payable to Xilong Scientific were extended to and are due on December 31, 2023, and the interest rate on the loan is 4.97%. | ||
Debt instrument, interest rate | 4.97% | ||
Installment Sale Contract | |||
Debt, Commitments and Contingencies [Line Items] | |||
Notes payable | $ 3,400,000 | ||
Notes payable, current portion | $ 408,000 | ||
Debt instrument, interest rate terms | The notes payable related to the installment sale are due in February 2030, and the interest rate is 1.08%. | ||
Debt instrument, interest rate | 1.08% | ||
Installment Sale Contract | Other Long-Term Liabilities | |||
Debt, Commitments and Contingencies [Line Items] | |||
Notes payable, noncurrent portion | $ 3,000,000 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Lessee Lease Description [Line Items] | |
Operating leases term of expiration | 2028-03 |
Finance leases term of expiration | 2026-12 |
Minimum | Building | |
Lessee Lease Description [Line Items] | |
Remaining terms including renewal options | 9 months |
Maximum | Building | |
Lessee Lease Description [Line Items] | |
Remaining terms including renewal options | 21 months |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Right-of-Use Asset, Short-term Lease Liabilities, and Long-term Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Operating lease ROU asset, net | $ 13,227 | $ 14,784 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Operating lease liabilities, short term | $ 6,095 | $ 6,132 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Operating lease liabilities, long term | $ 7,309 | $ 8,795 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Finance lease ROU asset, net | $ 2,543 | $ 2,784 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets | Other long-term assets |
Finance lease liabilities, short term | $ 954 | $ 943 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Finance lease liabilities, long term | $ 1,575 | $ 1,818 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Leases - Schedule of Operatin_2
Leases - Schedule of Operating and Financing Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,702 | $ 538 |
Finance lease cost: | ||
Amortization of ROU assets | 243 | 96 |
Interest on lease liabilities | 27 | 14 |
Short-term lease cost | 501 | 97 |
Total lease cost | $ 2,473 | $ 745 |
Leases - Schedule of Supplement
Leases - Schedule of Supplemental Information Related to Operating and Finance Leases (Details) | Mar. 31, 2023 |
Leases [Abstract] | |
Weighted average remaining lease term - operating leases | 3 years 1 month 13 days |
Weighted average discount rate - operating leases | 3.79% |
Weighted average remaining lease term - finance lease | 2 years 10 months 13 days |
Weighted average discount rate - finance lease | 3.96% |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Operating and Finance Lease Liabilities using Undiscounted Cash Flows on an Annual Basis (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Operating Leases | |
2023 (remaining 9 months) | $ 4,929 |
2024 | 4,073 |
2025 | 2,119 |
2026 | 1,522 |
2027 | 1,360 |
Thereafter | 216 |
Total lease payments | 14,219 |
Less imputed interest | (815) |
Total | 13,404 |
Finance Lease | |
2023 (remaining 9 months) | 727 |
2024 | 1,033 |
2025 | 547 |
2026 | 366 |
Total lease payments | 2,673 |
Less imputed interest | (144) |
Total | $ 2,529 |
Leases - Schedule of Lease Inco
Leases - Schedule of Lease Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Lease income | $ 45 | $ 97 |
Variable lease income | 1 | |
Total lease income | $ 45 | $ 98 |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Interest and Other Income | Interest and Other Income |
Leases - Schedule of Future Fix
Leases - Schedule of Future Fixed Lease Payments from Tenants for All Noncancelable Operating Leases (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Leases [Abstract] | |
2023 (remaining 9 months) | $ 136 |
2024 | 94 |
Total | $ 230 |
Equity-Based Compensation - Sum
Equity-Based Compensation - Summary of Equity-Based Compensation Expenses as Part of Cost of Revenue and Operating Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total Equity-based compensation expense | $ 10,265 | $ 5,616 |
Cost of Revenue | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total Equity-based compensation expense | 2,394 | 1,465 |
Research and Development | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total Equity-based compensation expense | 3,448 | 1,921 |
Selling and Marketing | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total Equity-based compensation expense | 1,361 | 825 |
General and Administrative | ||
Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Total Equity-based compensation expense | $ 3,062 | $ 1,405 |
Provision for Income Taxes - Ad
Provision for Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
(Benefit from) provision for income taxes | $ (5,200) | $ 48,421 |
Effective income tax rate | (25.00%) | 24% |
Income (Loss) per Share - Recon
Income (Loss) per Share - Reconciliation of Basic and Diluted Income (Loss) Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income (loss) attributable to Fulgent | $ (15,340) | $ 153,979 |
Weighted-average common shares—outstanding, basic | 29,536 | 30,234 |
Weighted-average common shares—outstanding, diluted | 29,536 | 31,240 |
Net income (loss) per common share, basic | $ (0.52) | $ 5.09 |
Net income (loss) per common share, diluted | $ (0.52) | $ 4.93 |
Income (Loss) per Share - Anti-
Income (Loss) per Share - Anti-dilutive Securities Excluded from Calculation of Diluted Income (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted income per share | 211 | 5 |
Restricted Stock Units | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted income per share | 2,040 | 352 |
Contingently Issuable Shares | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of diluted income per share | 371 |
Related Parties - Additional In
Related Parties - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
ANP Technologies, Inc., | Ming Hsieh | |||
Related Party Transaction [Line Items] | |||
Ownership percentage | 20% | ||
AHMC Healthcare Inc. | Genetic Sequencing Services | |||
Related Party Transaction [Line Items] | |||
Revenue from related parties | $ 95,000 | $ 775,000 | |
Trade accounts receivable, net from related parties | 66,000 | $ 93,000 | |
ANP Technologies Inc | |||
Related Party Transaction [Line Items] | |||
Due to related parties | 890,000 | $ 607,000 | |
Purchase of COVID-19 antigen rapid tests kits from related party | $ 959,000 | $ 0 |
Goodwill and Acquisition-Rela_3
Goodwill and Acquisition-Related Intangibles - Summaries of Goodwill and Acquisitions-Related Intangibles Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 143,120 | $ 143,027 |
Acquisitions-related intangibles, net | 84,109 | |
Total intangible assets, net | 148,699 | 150,643 |
In-Process Research & Development | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | 64,590 | 64,590 |
Royalty-Free Technology | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | 5,388 | 5,364 |
Less: accumulated amortization | (1,033) | (894) |
Acquisitions-related intangibles, net | $ 4,355 | 4,470 |
Weighted-Average Amortization Period | 10 years | |
Customer Relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 82,755 | 82,750 |
Less: accumulated amortization | (7,814) | (6,215) |
Acquisitions-related intangibles, net | $ 74,941 | 76,535 |
Weighted-Average Amortization Period | 13 years | |
Trade Name | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 3,790 | 3,790 |
Less: accumulated amortization | (535) | (412) |
Acquisitions-related intangibles, net | $ 3,255 | 3,378 |
Weighted-Average Amortization Period | 8 years | |
In-Place Lease Intangible Assets | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 360 | 360 |
Less: accumulated amortization | (64) | (46) |
Acquisitions-related intangibles, net | $ 296 | 314 |
Weighted-Average Amortization Period | 5 years | |
Laboratory Information System Platform | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 1,860 | 1,860 |
Less: accumulated amortization | (620) | (527) |
Acquisitions-related intangibles, net | $ 1,240 | 1,333 |
Weighted-Average Amortization Period | 5 years | |
Purchased Patent | ||
Goodwill And Intangible Assets [Line Items] | ||
Acquisitions-related intangibles, gross | $ 29 | 29 |
Less: accumulated amortization | (7) | (6) |
Acquisitions-related intangibles, net | $ 22 | $ 23 |
Weighted-Average Amortization Period | 10 years |
Goodwill and Acquisition-Rela_4
Goodwill and Acquisition-Related Intangibles - Summary of Carrying Amount of Goodwill (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 143,027 |
Goodwill, Beginning Balance | 143,027 |
Net foreign currency exchange differences | 93 |
Goodwill, Ending Balance | 143,120 |
Goodwill, Ending Balance | $ 143,120 |
Goodwill and Acquisition-Rela_5
Goodwill and Acquisition-Related Intangibles - Summary of Annual Amortization Expense For Acquisition-Related Intangibles (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Finite Lived Intangible Assets [Line Items] | |
2023 (remaining 9 months) | $ 5,900 |
2024 | 7,867 |
2025 | 7,867 |
2026 | 7,557 |
2027 | 7,228 |
2028 | 7,193 |
Thereafter | 40,497 |
Acquisitions-related intangibles, net | $ 84,109 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 143,120 | $ 143,027 | |
Revenue | 66,168 | $ 320,268 | |
Operating income (loss) | $ (24,824) | $ 201,933 | |
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Estimated amortization life of identified intangible assets assumed | 13 years | ||
Trade Name | |||
Business Acquisition [Line Items] | |||
Estimated amortization life of identified intangible assets assumed | 8 years | ||
In-Place Lease Intangible Assets | |||
Business Acquisition [Line Items] | |||
Estimated amortization life of identified intangible assets assumed | 5 years |
Business Combinations - Summary
Business Combinations - Summary of Consideration Paid and Amount of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 143,120 | $ 143,027 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | ||
Stock repurchase program, authorized amount | $ 250,000,000 | |
Number of shares repurchased | 0 | 0 |
Stock repurchase program, remaining authorized amount | $ 175,700,000 |